Title
Resolution Authorizing Infor Subscription Renewal, Additional Product, Implementation Fees for Migration to the New Infor Erp
Body
Council Priority: Exceptional Customer Service and a Diverse City Government Workforce 5) Ensure Fiscal Stewardship, Transparency, & Accountability
Department: Information Technology
Council District: ALL
Public Hearing: N/A
Advertising Date/By: N/A
Contact 1 and Phone: Christine Hofer 336-373-4650
Contact 2 and Phone: Jane Nickles 336-373-2314
PURPOSE:
The Finance, Human Resource and Information Technology Departments desire to alter the remaining two years of our five year contract and extend our commitment to the Infor ERP solution. The Infor Lawson solution is essential in supporting the city’s enterprise applications which include financial, human capital management, and procurement systems. It is considered the system of record for all City administration functions. The new subscription agreement will have a five year commitment term with annual subscription fees due each year. Infor has offered this agreement with a 2% escalation in each annual fee. This is 3% below the industry norm. This renewal and service agreement includes additional product and all data migrations to the new Infor version 11 release which is entirely rewritten from the original Lawson applications. Securing this commitment for several years allows us to plan out our anticipated expenses and maintain our capital leasing fund at the appropriate funding levels. The existing contract expires in 2021 and this contract will supersede it and extend to 2024.
We are happy with the current product, but always seeking further improvement. By changing our licensing model, Infor was able to put together a bundled package to meet our objectives. This package includes the following new products:
• Coleman Artificial Intelligence - built in machine learning and voice recognition skills
• Birst Reporting Tools- Analytic designer tools and pre-delivered dashboards
• Tracker E-verify and I-9 solution services.
• User Adoption Platform- Training tools for the Learning Management System
• Infor Document Management - Built in Document management to store supporting documentation on the transaction
The City has been in negotiations with Infor since late January 2019 to determine if this project is feasible and can be done within the framework of our appropriated funding. Infor has agreed to make a substantial investment in the City of Greensboro to ensure our success in this project as we have cultivated a strong partnership with this vendor over the last 19 years. Once we received commitment from the CEO of Infor, we proceeded with demos of the new software versions and obtained consensus from the leadership and staff of the administrative departments. This was completed in mid-June, and over the last month we have worked with the vendor to establish the requirements as well as the anticipated timeline.
BACKGROUND:
In 2003, the City of Greensboro implemented an ERP system with Lawson Software. Included in the original contract was the presumption that the City would enter into a support and maintenance agreement on an annual basis for as long as they choose to use this software solution to meet their ERP needs. In 2012, Lawson was subsequently sold to Infor. In 2014 we upgraded he Infor Lawson applications and moved the entire solution to the Amazon Cloud; we also converted our on premise license to a subscription based software as a service (SaaS) model.
BUDGET IMPACT:
Funding for the onetime costs as well as the ongoing subscription fees are included in the adopted budged.
Professional Services to be encumbered in FY20:
|
Item |
Amount |
Account |
|
Project Services |
$600,000 |
686-1001.01.5413 |
|
Implement e-verify Tracker |
5,000 |
101-0501-01.5212 |
|
Total Services: |
605,000 |
|
Subscription fees are as follows:
|
Item |
Prior Budget Estimates |
New Amount |
Account |
|
Subscription Fee FY20 |
900,000 |
$950,000 |
686-1001.01.5415 |
|
Subscription Fee FY21 |
918,000 |
$969,000 |
686-1001.01.5415 |
|
Subscription Fee FY22 |
936,360 |
$988,380 |
686-1001.01.5415 |
|
Subscription Fee FY23 |
955,087 |
$1,008,148 |
686-1001.01.5415 |
|
Subscription Fee FY24 |
974,189 |
$1,028,311 |
686-1001.01.5415 |
|
Total License Fees: |
$4,683,636 |
$4,943,839 |
|
This is an estimated increase of $260,203 over a five year period and includes the additional product.
RECOMMENDATION / ACTION REQUESTED:
It is the recommendation of Information Technology, Finance and Administrative Services Department and Human Resources Department that we encumber funds for these professional services and continued Subscription fees as well as the embedded ‘Tracker’ I9/e-verification Vendor services and product. Continuing with the existing solution is the most reasonable and efficient way to meet the objectives of the organization. The Infor software is continually evolving, and offers the breadth and depth of functionality we require to run the business of the City. Implementing a new solution would create a great deal of resource turbulence to the organization and is cost prohibitive. In light of this, we have requested and formally received an MWBE Waiver.